How to Retain your Assets in an Orange County Bankruptcy

No one wants to lose their assets, whether it's due to levies, garnishments, repossessions, or liquidation in bankruptcy court. However, filing for bankruptcy may be the key to preserving your assets, while allowing you to get back on your feet, financially. If you file for a Chapter 13 bankruptcy, your assets will be protected in most instances while you work out a payment plan to repay priority and secured debts. You may not have to pay back all of your unsecured debts, and depending upon your financial situation, you may only have to pay back part, or even no unsecured debt. A Chapter 13 repayment plan does not liquidate your assets, and you will be able to maintain the possession of your bank accounts, your paycheck, and your possessions, as long as you complete the repayment plan.

Even if you cannot repay your debts and have to file for a Chapter 7 bankruptcy, all may not be lost. California provides exemptions for specific types of property and in certain dollar amounts. These exemptions are property that cannot be taken and sold in order to pay your creditors. If your home, car, or other possessions fall within the limits of the exemptions, they will not be sold. Property that is not covered by exemption laws may still be preserved if the bankruptcy trustee determines that it would be too expensive or cumbersome to sell your property, and that creditors would not be able to receive any money from the sale. However, if you have a great deal of property, you may have to let go of some of that property during the course of the Chapter 7 bankruptcy in order to pay off your creditors.

Regardless, whether you file for Chapter 7 or Chapter 13 bankruptcy, you will likely be able to keep more of your possessions than if you'd simply let creditors have their way. Filing for bankruptcy is often the best way to stop collection activities that can cause you to lose your property and possessions - either through levies, garnishment, repossession, or foreclosure. If you are worried about retaining your assets while you work through your bankruptcy case, contact us today. Our premier  http://www.bankruptcylaworangecounty.com/Contact-Us.aspx Orange County Bankruptcy Law Firm has years of experience helping clients throughout Orange County when it comes to preserving assets and filing bankruptcy. Contact us today and arrange for a free initial case evaluation as soon as possible - the sooner you are able to file for bankruptcy protection, the more of your assets you may be able to retain.